One of America’s most iconic hot dogs is about to be sold to a Chinese company.
Nathan’s Famous, the maker of hot dogs and operator of a 150-unit restaurant chain, is being sold to the pork producer Smithfield, the companies said on Wednesday. Smithfield will pay $102 per share for Nathan’s, giving the company an enterprise value of $450 million.
Smithfield is a Chinese-owned company based in Smithfield, Virginia. The company already has a close relationship with Nathan’s, having had an exclusive license to manufacture and sell hot dogs under the brand in the U.S. and Canada, a license it has held since 2014.
In buying Nathan’s, Smithfield will be able to keep those rights “into perpetuity” and “maximize the Nathan’s brand growth across the retail and foodservice channels,” the pork producer said.
“The Nation’s Famous acquisition is a meaningful step in the progression of Smithfield Foods, allowing us to own all of the top brands in our Packaged Meats portfolio and unlock new growth opportunities for our largest segments,” Shane Smith, CEO of Smithfield, said in a statement.
Nathan’s restaurant chain finished 2024 with 157 global units, all of them in the U.S. System sales were $80.5 million, up 6.1%, according to data from Restaurant Business sister company Technomic.
The company is known most for its Nathan’s Hot Dog Eating Contest that takes place on Coney Island in New York every July 4.
The deal gives Nathan’s a valuation multiple of 12.4x the company’s adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, over the past 12 months. The company said the multiple falls to 10 after post-merger “synergies” are factored in.
Smithfield said in the announcement that it hopes to increase foodservice sales volume with the deal.
“This combination is a natural fit and provides a compelling value for Nathan’s Famous stockholders,” Eric Gatoff, CEO of Nathan’s, said in a statement. “As a long-time partner, Smithfield has demonstrated an outstanding commitment to investing and growing our brand while maintaining the utmost quality and customer service standards.”
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